Banking Crisis Back to Haunt Us? Why We Can’t Rule Out a Complete System Failure: Jim Bianco

Daniela Cambone speaks with Jim Bianco, founder and president of Bianco Research, to discuss the recent rise in Treasury yields, its impact on the economy, the state of the banking system, and the real estate market. Bianco explains that the rise in Treasury yields indicates a rejection of previous lows, setting up a base for higher yields. "It means that the economy is doing OK," he continues. However, he points out that inflation becomes a concern as the Fed may not cut rates until the summer. Additionally, Bianco states that systematic risk within the U.S. banking sector cannot be ruled out, as many smaller banks engaged in commercial real estate lending have been negatively impacted by the discounted value of office buildings. “What is an office worth today when people only go there three days a week? And the answer is we don't quite know, but we do know it's not what it was worth in 2019.” He also explains the reasons behind the current real estate recession and suggests strategies for protecting wealth in this uncertain environment. Watch the video to learn more about his insights.

Timestamps:

0:00 10-year yield and the Fed 2:03 Economy 4:33 Wall Street and the Fed rate cuts 7:01 Wealth disparity 10:10 U.S. equities outlook 14:46 Election year 17:25 U.S. banking system 22:03 Real estate recession 25:12 Gold 30:09 Owning physical gold